R2R is a finance and accounting process that involves collecting, processing, and delivering accurate financial data. It transforms raw financial transactions into meaningful insights through reconciliation, reporting, and analysis, supporting compliance and strategic decision-making.
Record to Report (R2R)
General Accounting and Bookkeeping
Involves recording daily financial transactions such as invoices, payments, and expenses in the ledger, ensuring the books are accurate, up-to-date, and compliant with accounting standards.
Fixed Assets Accounting
Manages the lifecycle of fixed assets (e.g., machinery, buildings), including capitalization, depreciation, and disposal, ensuring proper tracking and valuation on the balance sheet.
Intercompany Accounting
Handles financial transactions between entities within the same corporate group. It ensures that all intercompany transfers are recorded, reconciled, and eliminated correctly during consolidation.
Bank and General Ledger Reconciliations
Compares internal records with external bank statements and general ledger entries to identify and resolve discrepancies, ensuring accuracy in financial records.
Financial Reporting
Involves preparing periodic financial statements and reports (e.g., balance sheet, income statement) in line with regulatory and internal requirements to reflect the financial health of the business.
Management Reporting
Provides internal stakeholders with insights such as budget vs. actual reports, profitability analysis, and cash flow summaries to support strategic planning and decision-making.
Inventory Management and Accounting
Tracks and values inventory (raw materials, work-in-progress, and finished goods) to ensure accurate financial reporting, cost control, and efficient inventory turnover.
Revenue Accounting
Ensures revenue is recognized accurately and in accordance with relevant accounting standards (e.g., IFRS 15 or ASC 606), often involving deferred revenue, subscriptions, or contract-based sales.
Closing Accounting
Refers to the monthly or quarterly process of closing the books, ensuring all transactions are posted, accruals are made, and financials are finalized within a defined timeline.
Financial Statement Preparation
Generates official financial statements, including the income statement, balance sheet, and cash flow statement, in compliance with statutory and regulatory standards, ready for audit or public reporting.